Global oil stocks return to more normal levels : IEA

IEA: Oil glut no longer exists despite lower demand forecast for India.

On Wednesday afternoon, in its monthly oil market report, the IEA lowered its forecast for global oil demand growth in 2021 by 270,000 barrels per day (BBL/BBL/d)  5.7 million BBL/d in its monthly report released last month.

IEA after the release of the monthly report, the United States, cloth two oil short - term fluctuation is  big. But half an hour later, the United States, cloth two oil short - term diving $0.7.

It said that despite the cut in its demand forecast for India, the oil glut had disappeared. India's crude oil demand fell by 825,000 b/d in May due to the outbreak.

On the supply side, the IEA said OPEC + oil output increased by 820,000 b/d in 2021  the OPEC + cut implementation rate was 114% in April. Non-OPEC + oil supply increased by 620,000 b/d year over year.

Global oil supply rose by 330,000 b/d to 93.4 million b/d in April, the monthly report showed. OECD oil inventories fell by 25 million barrels to 2.951 billion barrels in March, 1.7 million barrels above the five-year average.

The group expects refining activity to rise sharply over the next four months, with capacity utilization expected to peak in August.

Three major crude oil reports have been released

Both the IEA  the EIA have slightly lowered their forecasts for crude oil demand growth this year, while OPEC believes demand growth is stable this year. The IEA said the drop in Indian demand would have little impact on global oil markets, with the recovery in demand outpacing supply growth.

The EIA's Short-Term Energy Outlook showed that global oil demand is expected to grow by 5.42 million b/d in 2021, up  5.5 million b/d previously. Global oil demand growth in 2022 is expected to be 3.73 million b/d, compared with a previous forecast of 3.65 million b/d. It is expected that this year, the United States, the two oil prices almost steady, next year a small rise.

The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global crude oil demand in the second quarter of 2021 by 300,000 BPD  raised its forecast for the third  fourth quarters, according to the group's monthly report released Thursday. The Organization of the Petroleum Exporting Countries (OPEC) has raised its demand forecast for its crude oil because of falling U.S. supplies.

Investors also need to keep an eye on the hacking of the US oil pipeline network. Parts of ColonialPipeline's network have been restored  the company will try to resume operations gradually, with most services expected to resume over the weekend. Given the inventory situation, this event will  have much impact on oil prices in the short term. But if the pipeline is  restored for a long time, the impact will start to grow significantly.

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Source: China Energy Network